The US Senate on Tuesday confirmed Kevin Warsh to a 14-year term as a Federal Reserve governor, marking a pivotal step toward his expected promotion as the next leader of the US central bank.

The confirmation passed with a 51-45 vote. In a notable break from party lines, Senator John Fetterman of Pennsylvania was the sole Democrat to join the Republican majority in supporting the appointment. Warsh will succeed Stephen Miran on the board, with his term retroactively beginning February 1.

Following the vote, the Senate immediately initiated the confirmation process for Warsh's concurrent four-year term as Fed chair. A cloture vote was held to begin the countdown toward a final leadership approval, which could occur as early as Wednesday. The transition comes as the term of the current Fed Chair Jerome Powell is set to expire on Friday.

Warsh, 56, is a lawyer and financier who previously served as a Federal Reserve governor from 2006 to 2011, playing a key role in navigating the global financial crisis during that time. His return to the board comes at a time of heightened scrutiny regarding the central bank's political independence.

Powell has announced he intends to remain on the board as a governor after his chairmanship ends, adding that he plans to keep a low profile as a governor. His term as governor expires in January 2028.

For his part, Warsh signaled a shift in direction for the central bank, calling for "regime change." His proposed strategy includes tighter coordination with the Treasury Department and the administration on non-monetary policies.

However, the economic landscape remains challenging. A surge in global oil prices since the outbreak of the US-Israeli strike against Iran has fueled domestic inflation, significantly dampening investor expectations for rate cuts this year. Financial markets are currently pricing in a one-in-three chance of a rate hike by December. The Fed's current target range for short-term borrowing costs stands at 3.5% to 3.75%.

The Federal Open Market Committee is scheduled to hold its next policy-setting meeting on June 16 to 17.